FirstGroup (LON:FGP) Announces Quarterly Earnings Results

FirstGroup (LON:FGP) issued its earnings results on Thursday. The transport operator reported GBX 20.30 earnings per share for the quarter, Digital Look Earnings reports. FirstGroup had a net margin of 2.53% and a return on equity of 19.28%. The business had revenue of GBX 475.19 billion for the quarter.

Here are the key takeaways from FirstGroup’s conference call:

• FirstGroup posted a strong FY2026, with adjusted revenue up 25% to more than £1.7 billion and adjusted EPS rising 5% to £0.203, supported by share repurchases and improving operating performance.
• The board proposed an 11% increase in the full-year dividend to £0.072 per share and launched a further £100 million share buyback program, signaling confidence in cash generation and shareholder returns.
• Bus remained the main growth engine, with operating profit up 7% as yield management, cost efficiencies, and acquisitions offset policy headwinds and inflation. Management also highlighted improving customer metrics, including NPS rising from +11 to +17.
• Rail is being reshaped as National Rail/DfT contracts transition to public ownership, while FirstGroup expands its open access and rail services businesses. Open access revenue grew despite heavier competition, but margins were pressured by mobilization costs and higher infrastructure charges.
• Management expects to enter a higher free-cash-flow phase, targeting about £400 million over the next three years, while keeping leverage comfortably below its framework and maintaining FY2027 adjusted EPS despite the rail transition.

FirstGroup Stock Performance

FirstGroup stock opened at GBX 187.90 on Thursday. The company has a debt-to-equity ratio of 203.28, a quick ratio of 0.74 and a current ratio of 0.70. FirstGroup has a fifty-two week low of GBX 152.10 and a fifty-two week high of GBX 240.40. The firm’s fifty day moving average price is GBX 169.43 and its 200-day moving average price is GBX 178.26. The stock has a market cap of £1.02 billion, a P/E ratio of 8.86, a price-to-earnings-growth ratio of 5.21 and a beta of 0.71.

FirstGroup Company Profile

FirstGroup plc provides public transport services in the United Kingdom. The company operates through First Bus and First Rail segments. The First Bus segment offers local bus services with a fleet of approximately 4,900 buses in the United Kingdom. The First Rail segment operates a passenger rail network that provides long-distance, commuter, regional, and sleeper services through a portfolio of Great Western Railway, South Western Railway, TransPennine Express, and Avanti West Coast franchises; and hull trains and Lumos.